Cryptocurrency exchange giant Coinbase has reportedly agreed to settle a class action lawsuit brought by former users of the now-defunct Cryptsy exchange, Coindesk reported today. Court documents suggest that the exchange will settle the suit with a $962,500 transfer to an escrow agent charged with handling claims.
The settlement came after a prolonged lawsuit and will eliminate the need for a public trial that could have drawn unwanted negative attention to the digital asset industry. An April 17 hearing has been scheduled to determine whether this initial agreement will be approved or whether modifications will be ordered.
This case was related to an earlier lawsuit involving Cryptsy, where the plaintiffs were awarded a total of 11,325 BTC.
Plaintiff attorney Silver Miller reportedly praised Coinbase for “stepping up” to resolve the case without a trial. He noted that the case against Cryptsy was a reminder of how many early players in the digital asset industry disregarded regulations and ignored their fiduciary duty to clients.
A webpage has been created for Cryptsy victims who used the exchange prior to 2015. The website provides information to help them file claims.